Items Affecting Payments
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What Can Affect Your Payment?


Payment Schedule

Payments are mailed or deposited electronically into your account on or around the 12th of the month, unless that day is a weekend or holiday. In that case, payment is mailed or deposited electronically into your account the next business day. If you are receiving payments via mail, please allow 10 business days to receive your check. Payments for a production month (both oil and natural gas) are normally sent out on or around the 12th of the second month following the production month. For example, payments for the production month of January are sent out on or around March 12th.

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Minimum Payment Policy

EOG Resources has a minimum payment policy of the lesser of $25 or the minimum amount required by statute or the minimum amount required by your lease. A payment will automatically be issued on the month that your account has accumulated this minimum required amount. Otherwise, in January of each year, you will be issued your accumulated payment as long as it totals more than $10.

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Market Conditions and Operational Issues

Payments will vary from month to month due to fluctuations in price, as well as varying production from individual wells. Payments also may be impacted by routine maintenance or operating issues, which may affect the volumes produced from a well during a given time period.

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Adjustments

Volume or price revisions may necessitate adjustments to your payment. If you were either overpaid or underpaid, adjustments are necessary to correct the previous payment. It is a good idea to keep your check detail for future reference, in the event adjustments occur.

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Negative Balance

In the event of a revised division order, adjustments are processed according to the revision. If an owner was overpaid due to the revised division order, then the recoupment amount will be adjusted against the owner’s current month payment. If the recoupment amount is larger than the owner’s current month payment, the owner is said to have a "negative balance." Adjustments made to correct overpayments are posted to a special account. Proceeds attributable to current production are also posted to this account to offset the negative balance. When the amount due the owner reaches the required minimum payment amount (usually $25.00), the owner will begin receiving checks again. The first check detail generated after a negative balance has been recouped will show the adjustments that caused the negative balance and the subsequent positive offsets.

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Suspense

On occasion, payments are held in suspense because of the transfer of a property interest from one owner to another, notice of death, lack of address, and other legal issues. Amounts due are accumulated and are released when the matter in question has been resolved, and EOG has received and processed all related documents. All payments are retroactive to the date of the suspension.

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Federal Withholding

If a valid Tax Identification Number has not been provided to EOG, the Internal Revenue Service requires EOG to withhold a certain percentage of your payment until this information is provided to EOG. To request a valid Tax Identification Number, U.S. residents need to file the W-9 form and international residents need to file the W-8 form. Please refer to the IRS website for the most updated forms and instructions.

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